Dutch banks don't have to compensate customers who fall for helpdesk scams

People who are tricked by fake bank employees into transferring money themselves to fraudsters are generally not entitled to compensation from their bank, according to a ruling by the Dutch financial complaints institute Kifid.

The case involved two victims of bank helpdesk fraud who lost a total of 59,000 euros, Trouw reports. A person posing as a bank employee persuaded them over the phone to install Quickview software, allowing the fraudster to monitor their online banking activity at SNS. The victims then raised their daily transfer limit and made three transfers.

SNS initially blocked the first payment for further investigation. But after speaking with the bank, the victims—acting on the fraudster's instructions—said the payment was needed to buy a camper, thereby allowing the transfer to proceed.

Kifid's Appeals Committee ruled that the payments had been made with the consumers' consent. According to the decision, the bank did not breach its duty of care because there was no evidence that it knew about the fraud or had serious indications that fraud was taking place.

In April, Kifid tightened the standards used to assess bank helpdesk fraud cases, making it easier for consumers to qualify for reimbursement.

However, a Kifid spokeswoman said a key factor in such cases is whether victims transfer money to fraudsters themselves or whether criminals move the money using stolen banking information. That distinction determines whether payments are legally considered "authorized" or "unauthorized."

"In the latter case, banks must in principle compensate consumers if they have not acted with gross negligence," the spokeswoman said.